Bengaluru, Nov 22 Karnataka Chief Minister Siddaramaiah on Saturday wrote a letter to Prime Minister Narendra Modi in connection with prices of maize and green gram dropping to record lows and demanded to direct National Agricultural Cooperative Marketing Federation of India (NAFED), Food Corporation of India (FCI) and National Cooperative Consumers' Federation of India Ltd (NCCF) to begin procurement at MSP without delay.
Siddaramaiah stated: "Dear Prime Minister Shri Narendra Modi ji, I write to you with deep concern and a sense of urgency regarding the severe price crash in maize and green gram (moong) in Karnataka, crops that sustain the livelihoods of lakhs of our farmers. The market prices have fallen far below the Minimum Support Price (MSP) declared by the Government of India, creating widespread distress among cultivators."
Karnataka has cultivated maize in over 17.94 lakh hectares and Green Gram in over 4.16 lakh hectares this Kharif season, and the State is expecting a tentative production of more than 54.74 lakh metric tonnes of maize and 1.983 lakh metric tonnes of green gram. Though this should have been an opportunity for prosperity, the current market conditions have turned it into a crisis.'
While the Government of India has declared an MSP of Rs 2,400 per MT for maize and Rs 8,768 per MT for green gram, the prevailing prices in Karnataka are Rs 1,600 – Rs 1,800 per MT for maize and Rs 5,400 per MT for green gram, which is a severe and unprecedented fall. Shockingly, even the modal prices over the previous three years were higher than the MSP, but this year, due to external pressures and supply-demand distortions, the prices have dropped to record lows.
Karnataka currently has an estimated marketable surplus of 32 lakh MT of maize, which is far beyond the absorptive capacity of local industries. I therefore request the immediate intervention of the Government of India to: Direct NAFED, FCI and NCCF to begin procurement at MSP without delay.
Since Karnataka does not include maize in its PDS distribution, FCI, NAFED and other procurement agencies must be directed to immediately commence procurement of maize and green gram at MSP under the Price Support Scheme or an appropriate market intervention mechanism, thereby ensuring price stability for farmers.
CM Siddaramaiah further demanded to ensure fair participation of Karnataka’s farmers in the ethanol supply chain. The basic rate for ethanol produced from maize is Rs 66.07 per litre, and an additional incentive of Rs 5.79 per litre (excluding GST) is payable for ethanol sourced from maize.
"However, it is observed that many ethanol plants in Karnataka are purchasing maize from middlemen and traders, bypassing farmers entirely. This defeats the purpose of both MSP and the Union Government's incentive structure meant to benefit cultivators.
The Union Government should direct the ethanol plants to procure maize directly from farmers or farmer-producer organisations (FPOs). If direct procurement is not ensured, the incentive given to ethanol producers should be reconsidered, as it is not reaching farmers," he stated.
CM Siddaramaiah underlined: "Every farming household in Karnataka looks to MSP as a promise, a guarantee of dignity and fair earning. Today, when prices have collapsed below MSP, and market forces have turned against them, the Union Government’s timely intervention will restore their confidence and ensure justice."
"Karnataka’s farmers have contributed immensely to the nation’s food security, ethanol capacity expansion, and economic growth. Ensuring fair procurement and equitable ethanol allocation is not only their right, it is a national responsibility. I urge your immediate intervention to avert widespread farmer distress in Karnataka and uphold the strength and stability of our nation’s agricultural backbone," he stressed.
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